Stocks Rebound as Eurozone Fears Ease

Wall Street shrugs off a much-anticipated downgrade of the big banks by Moody's as the eurozone's leaders take steps to address the region's debt crisis.

August crude oil futures added $1.56 to settle at $79.76 a barrel. August gold futures rose $1.40 to settle at $1,566.90 an ounce.

The benchmark 10-year Treasury was lower by 16/32, raising the yield to 1.672%, while the greenback was down 0.06%, according to the dollar index, which compares the buck to a basket of six other currencies.

In corporate news, shares of Darden Restaurants ( DRI) fell in pre-market action after the Orlando-based company posted in-line earnings for its fiscal fourth quarter but came in slightly short on the top line. Shares fell a little less than 1%.

Arch Coal ( ACI) said after Thursday's closing bell that it's laying off 750 employees, or roughly 10% of its workforce. The company said it plans to "idle several operations and to reduce production at other mining complexes in Appalachia due to the unprecedented downturn in demand for coal-based electricity. " Shares fell 1.1%.

Medtronic ( MDT) said its board has approved a 7.2% increase in its regular quarterly cash dividend to 26 cents a share. The medical device company said the dividend is payable on July 27 to shareholders of record on July 6. Shares ticked up 1%.

Monster Beverage ( MNST) is being added to the S&P 500, replacing Sara Lee ( SLE). Standard & Poor's expects the change to take place after the closing bell on June 28. Monster Beverage shares lost 1.5%.

Ryder Systems ( R) lowered its fiscal second-quarter outlook, citing weakness in its fleet management solutions business. The company now sees comparable earnings of 90 to 95 cents a share for the three months ended in June, down from a previous expectation for a profit of $1.07 to $1.12 a share. Shares plunged 13%.